Definition or Meaning - What is SAP FICO?

Full form or SAP FICO stands for FI (Financial Accounting) and CO (Controlling), SAP FI CO is the best configuration for internal as well as external accounting processes. It is an important core module of ERP processes, wherein real time financial transactions are integrated with various parallel SAP modules for best results.

Well suited for professionals desirous of excelling in the fields of accounting and finance; SAP Financial Accounting (FI) offers highly sophisticated means of financial transaction reporting and better handling of accounts. The external reports generated with the help of SAP FI CO are being increasingly utilized by banks, administrators, Tax Authorities, stock holders and managers, in line with their specific requirements. SAP FI is responsible for integrating diverse modules and generating a single system for the entire organization. In a nutshell, it draws data for external reporting procedures while its SAP Controlling Module (CO) lays emphasis on data for internal users.

Sub-components of SAP FI

SAP FI General Ledger accounting

Asset Accounting

Funds Management

Accounts Receivables

Accounts Payable

Special Purpose Ledger

Consolidation

Travel Management

Bank Accounting

SAP Controlling is vital for management decision making processes and is often used for internal reporting purposes. The Controlling area is typically a smartly conceived organization unit that is useful for representing the controlling and accounting activities of profit centers, product costing, profitability and so forth. CO, the controlling module, aptly complements the value created by the FI reports and utilizes the many features of the vastly used SAP FI components. The SAP Controlling Module (CO) further helps the management by organizing profit centers, Cost Centers, contribution margins and so forth. Once the transactions are posted in FI, they are transferred to CO for further processing, Cost Accounting, analytical reporting and audit-control.

Sub Components of SAP CO

Cost Element Accounting

Profit Center Accounting

Cost Center Accounting

Internal Orders

Profitability Analysis

Product Cost Controlling

Some important features and benefits of using SAP FI CO are:

SAO FI offers some of the most important components for diverse SAP implementations.

SAP FI (Financial Accounting) is an effective tool for reliable, accurate and time based external reporting in the form of Profit and Loss statements, Balance Sheets and so forth.

Other SAP modules like SAP SD (Sales and Distribution), MM (Materials Management), PS (Project Systems), PM (Plant Maintenance) and SAP PP (Production Planning) integrate well with SAP FICO and provide it with postings in a consistent way. These benefits of SAP FI CO are being utilized by applications in most organizations, globally.

All accounts-relevant transactions are generated in Logistics (LO) and are posted in real-time to Financial Accounting modules through automatic account determination techniques. All this data is also capable of being passed on to Controlling (CO).

Tutorials

Accounting Entries1.1 All the Inventory transactions will look for the valuation class and the corresponding G.L. Accounts and post the values in the G.L accounts.For Example: During Goods ReceiptStock Account & ...

SAP FICO Training Material with Screen ShotsThis tutorial contains the Complete list of SAP FICO Training Material with Screen Shorts How to Create a Company Code (OX02) in SAP FICO How to define Business Area (at client level and not to ...

Difference between INVOICE and BILLING in SAPINVOICE vs BILLING in SAPBoth are same in SD point of view. In SD terminology we call as Billing Document and In FI terminology we call as INVOICE. In MM again only INVOICE will be there for Vendors.I ...

SAP FICO Job and Expected SalaryThis is the best course for freshers to get highly paid jobs. After pursuing this course usual job profile is ofThe job of SAP FICO consultant is to support and implement SAP FICO module by enhancing ...

Create New Tax code in SAPT.code FTXP is used to create Tax code.All the Taxes are divided into two categories. Input tax: All taxes related to purchase are considered as Input tax. Output tax: All taxes on sales come under th ...

Open and Close posting PeriodsT-code (OB52) PathFinancial Accounting-> Financial Accounting Global Setting-> Documents-> Posting Periods-> Open and Close posting Periods In this activity you specify for each ...